The Land Transportation Franchising and Regulatory Board (LTFRB) is demanding an explanation from transport network company (TNC) u-Hop after it reportedly continued to accept new drivers on its platform despite an existing ban.
In a statement on Monday, the LTFRB directed u-Hop “to stop the activation” of new driver applicants and refrain from putting the board’s logo on its certificates of accreditation “without permission.”
The LTFRB said it was able to obtain two certificates that the TNC issued on Friday and signed by u-Hop chair Marvin dela Cruz.
The board found out that the certificates were issued to two different drivers who used the same vehicle.
Show cause order
LTFRB board member Aileen Lizada said the board would issue a show cause order to u-Hop, since the LTFRB had yet to lift the ban imposed three months ago.
In July, the board ordered TNCs, including Grab and Uber, to stop accepting new drivers while it was still fine-tuning regulations governing the app-based transport sector.
In August, Uber was penalized with a monthlong suspension for defying the ban but was allowed the option of paying a P190-million fine instead.
The company also extended P299.24 million in financial assistance to its drivers.